Advice for a student

[Boblax]

Hello,

I'm looking for some advice. Let me explain the situation I've got myself in first.

I am currently a medical student. I have a closed credit card, about 2,000, in collections from a card I used poorly before I started my undergrad. I also have about 4,000 worth of medical bills (from a time when I didn't have insurance). I applied for "financial aid" with the hospital the bill is with and that 4,000 is after applying the financial aid. That account is also in collections.

As a medical student, I don't currently have a job and my income is through federal student loans. I currently have no credit cards.

Here's my questions.

1. Is it too early to start thinking about rebuilding my credit? Do I need to wait till I have a steady source of income?

2. I've read one of the ways to start "building" your credit score is to obtain a credit card. Which I've checked into, and would be able to do through a credit union I've been a member of my whole life. Would it be better to get my debts paid off before even considering this?

3. Both collections accounts (the medical and credit card), have offered me to "settle" by paying a lump sum amount (I think the credit card one was 50% of the balance). Is this something I should consider doing right now with student loan money? Or again, do I need to wait till I have the income to do so?


Thanks

[chane]

1. No, building your credit is something you should think about way before you need it or have income or whatever.

2. No, getting a credit card now and building positive credit is smart. You're going to need some positive tradelines reporting.

3. You may want to consider paying them off with student loans to get them taken care. Try to negotiate a pay for delete by sending them a letter getting them to agree to remove the negative accounts on your credit report in exchange for the settlement payment.